My Daily Advertiser Op Ed column for Tuesday 28 April 2020
Green New Deal or Business as Usual?
Recently Reserve Bank Governor Philip Lowe and Treasury Secretary Steven Kennedy addressed the national cabinet. PM Morrison said they made it clear “business as usual when it comes to the policy we had prior to the election will need to be reconsidered on the other side”.
That’s a welcome change from Scotty from Marketing, who had previously touted a quick ‘snap back’ to business as usual.
Nonetheless, it raises the question of what form the new economy would take post COVID-19.
Will it be a continuation of neo-liberalism, which essentially means unregulated capitalism, or something more attuned to the needs of the planet and the welfare of its people?
Two recent newspaper stories clearly showed the two opposing paths open to the government, which in its remaining two years could take either route.
One way forward was a story about Energy Minister Angus Taylor, who is moving ahead with a new program that includes measures designed to prop up coal-fired electricity generators and weaken environmental protections.
I won’t devote any more of my precious column inches to such backward-looking nonsense, but instead focus the story of a much more useful proposal. From the Greens, it was a proposal for the Green New Deal, which I have previously mentioned but that now warrants a closer look.
The concept of a Green New Deal originated in the USA. It was taken up by the new young progressive Democrats elected to congress in 2018 and was amplified by Bernie Sanders during his recent presidential nomination campaign. Here in Australia it has been adopted by the Greens and given a specific policy focus.
After the government’s $130 billion JobKeeper legislation had been pushed through Parliament unamended, it was Greens senate leader Larissa Waters who offered an optimistic take on the upheaval Australia is suffering.
“This crisis has highlighted the extent to which Australia’s safety net has been picked away at for 30 years,” she said … In just a few short weeks we’ve seen the beginnings of a stimulus that could set us up for better things and play to our collective strengths … It’s a chance to think how we want this country to go forward, and hope to dream for a better future.”
Greens parliamentary leader Adam Bandt told the Saturday Paper that this is the moment for Australia to be ambitious in its thinking about the recovery.
“I see a debate looming about the pathway out; it will be a choice between blue austerity or green growth,” he says. “The Green New Deal is about borrowing to invest to make more money and grow out of the crisis, versus others who argue the only way is cutting, [which] will only increase the crisis.”
He is confident that a sweeping “government-led plan of investment and action to create a clean economy and a caring society” is still possible – perhaps even more viable in the wake of Covid-19. “A three-decade-old neoliberal rule book has been thrown out the window,” he says.
He often cites the work of economist and former climate change adviser Professor Ross Garnaut, whose recent book Superpower: Australia’s Low-Carbon Opportunity has captured cross-party support for highlighting the prospect that a combination of cheap and abundant renewable energy and low interest rates could revitalise manufacturing in this country and see us exporting clean power to Asia.
In the next month or two, the Greens will announce their recovery plan, ahead of the release of the full Green New Deal policy next year. “Everything will be costed and funded,” Bandt promised.
Just before the Covid-19 shutdown, Bandt began a national tour to promote the Green New Deal, announcing a $28 billion plan to build 500,000 sustainable new homes over the next 15 years, as part of the party’s vision for universal free housing, education and health.
Bandt noted the Morrison government is going to be forced to act under the pressure of the coming downturn. “The government’s going to need to invest even more if we want everyone to have a decent job on the other side of this crisis. Unless the government wants high unemployment to be a permanent feature in Australia, they’re going to have to borrow and invest even more.”